Cenovus Energy Down 0.3% In US Premarket After Announcing $2.6 Billion Offering of senior notes

06:17 AM EST, 11/19/2025 (MT Newswires) -- Cenovus Energy (CVE) , which recently completed its acquisition of MEG Energy Corp (MEG.TO), was at last look Wednesday down 0.3% in US premarket after announcing overnight that it has priced an offering of $2.6 billion in aggregate principal amount of senior unsecured notes. The notes offered are comprised of four tranches across Canadian dollar and U.S. dollar denominations.

A statement noted the Canadian notes are comprised of a $650 million principal amount bearing a coupon of 4.25% and $550 million principal amount bearing a coupon of 4.60%, with maturities on March 20, 2033, and November 20, 2035, respectively. The U.S. Notes are comprised of $500 million principal amount bearing a coupon of 4.65% and $500 million principal amount bearing a coupon of 5.40%, with maturities on March 20, 2031, and March 20, 2036, respectively. The offerings are expected to close on November 20, 2025, subject to customary closing conditions.

Cenovus said it intends to use the net proceeds of the offerings to fund the redemption of its $750 million aggregate principal amount of 3.60% senior notes due 2027 and its $373 million aggregate principal amount of 4.25% senior notes due 2027, and to fund the redemption of MEG's $600 million aggregate principal amount of 5.875% senior notes due 2029, and for general corporate purposes.

Shares in CVE rose near 3% to near 52 week highs in both Canada and the U.S. yesterday.

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